South-Western Federal Taxation 2016: Individual Income Taxes, Professional Edition, 39th Edition

  • includes H&R Block CD-ROM
  • William H. Hoffman, Jr. University of Houston
  • James C. Young Northern Illinois University
  • William A. Raabe University of Wisconsin - Whitewater
  • David M. Maloney University of Virginia
  • Annette Nellen San José State University
  • ISBN-10: 1305393341  |  ISBN-13: 9781305393349
  • 1152 Pages
  • Previous Editions: 2015, 2014, 2013
  • © 2016 | Published
  • List Price = $ 376.95
  • For quantity discounts, Contact your Representative
  • For single copy purchases, visit
  • Newer Edition Available



Master a solid understanding of income tax concepts for individuals and today’s ever-changing tax legislation with SOUTH-WESTERN FEDERAL TAXATION 2016: INDIVIDUAL INCOME TAXES, 39E. Renowned for its understandable, time-tested presentation, this book remains the most effective solution for helping you thoroughly grasp individual taxation concepts. This edition reflects the latest tax legislation for individual taxpayers at the time of publication, while continuous online updates keep you current with additional tax law changes as they take effect. This edition builds on the book’s proven learning features with clearer new examples, more summaries and meaningful tax scenarios that help clarify concepts and provide opportunities to sharpen critical-thinking, writing, and research skills. The book’s framework demonstrates how topics relate to one another and to the 1040 form. Trust SOUTH-WESTERN FEDERAL TAXATION 2015: INDIVIDUAL INCOME TAXES for the most thorough coverage of individual income taxation available today.

Features and Benefits

  • CHAPTER OUTLINES HELP YOU AND YOUR STUDENTS PREPARE FOR CLASS. Each chapter begins with a chapter outline that directs students to the right topics for study or reference.
  • PRACTICAL TAX SCENARIOS START EVERY CHAPTER. The “Big Picture: Tax Solutions For The Real World” feature gives a glimpse into the lives, families, careers and tax situations of typical individual filers. Each Big Picture case asks students to apply what they will learn in the upcoming chapter to develop the best tax solution for these real-life dilemmas.
  • BIG PICTURE EXAMPLES HELP STUDENTS FOLLOW CLIENTS THROUGH THE CHAPTER. Approximately four examples out of the many in every chapter are based on the “Big Picture” tax situation that opens the chapter. These examples help students understand new topics as they bring a more consistent application of data and practical tax stories that span the whole chapter.
  • PRACTICAL CONCLUSIONS REINFORCE TAX SCENARIOS INTRODUCED IN BIG PICTURE EXAMPLES. Returning to the client situations introduced in the chapter opening, end-of-chapter “Refocus on the Big Picture” summaries and tax planning scenarios apply concepts and chapter topics with professional solutions. A “What If?” section demonstrates how tax treatments can vary as a result of potential changes in the filer’s situation, further preparing readers for tax planning.
  • FITTING IT ALL TOGETHER FRAMEWORK HELPS STUDENTS NAVIGATE TOPICS BY EXPLAINING HOW TAX CONCEPTS ARE ORGANIZED. The “Fitting it all Together: Framework 1040” uses the Income Tax Formula for Individuals to help students organize their understanding of the chapters and see how topics relate to the basic tax formula. Students learn to identify where various items are reported on Form 1040.
  • REAL-WORLD FEATURES HELP STUDENTS UNDERSTAND TODAY’S MODERN TAX ENVIRONMENT. Drawn from today’s business and popular press, “Tax in the News” features enliven class discussions by presenting current issues that illustrate the chapter material and apply them to real life.
  • LEARNING FEATURES HELP STUDENTS DEVELOP PROFESSIONAL SKILLS. “Ethics and Equity” features spark critical thinking and discussion as students evaluate their own value systems while reviewing ethical scenarios. Most chapters include a separate section that details how the tax law can be applied to reach taxpayer’s goals. Tax planning applications also appear throughout each chapter. “Global Tax Issues” highlight how taxation is affected by international concerns and illustrate tax laws across the globe. Students develop decision-making and analytical skills with Decision-Making Problems.
  • CENGAGENOW OPTIMIZES STUDENT LEARNING AND PRODUCES DESIRED OUTCOMES. CengageNOW is a powerful course management system and online learning tool that provides control and customization for your course. CengageNOW includes end-of-chapter homework from the text, “What If” versions of problems, algorithms, detailed feedback, test bank questions, student personalized study plan, superior tagging, and more.
  • H&R BLOCK® TAX PREPARATION SOFTWARE ACCOMPANIES EACH TEXT. One of today’s most popular tax preparation software choices, H&R Block® software is available with each new copy of this edition and provides an ideal tool for guiding students through the tax return process with a dependable, user-friendly approach.

Table of Contents

1. An Introduction to Taxation and Understanding the Federal Tax Law.
2. Working with the Tax Law.
3. Tax Formula and Tax Determination; An Overview of Property Transactions.
4. Gross Income: Concepts and Inclusions.
5. Cross Income: Exclusions.
6. Deductions and Losses: In General.
7. Deductions and Losses: Certain Business Expenses and Losses.
8. Depreciation, Cost Recovery, Amortization, and Depletion.
9. Deductions: Employee and Self-Employed-Related Expenses.
10. Deductions and Losses: Certain Itemized Deductions.
11. Investor Losses.
12. Alternative Minimum Tax.
13. Tax Credits and Payment Procedures.
14. Property Transactions: Determination of Gain or Loss and Basic Considerations.
15. Property Transactions: Nontaxable Exchanges.
16. Property Transactions: Capital Gains and Losses.
17. Property Transactions: Section 1231 and Recapture Provisions.
18. Accounting Periods and Methods.
19. Deferred Compensation.
20. Corporations and Partnerships.
Appendix A: Tax Rate Schedules and Tables.
Appendix B: Tax Forms.
Appendix C: Glossary.
Appendix D: Table of Code Sections Cited, Table of Regulations Cited,
Table of Revenue Procedures and Revenue Rulings Cited.
Appendix E: Comprehensive Tax Return Problems.
Appendix F: Table of Cases Cited.
Appendix G: Depreciation.

What's New

  • NEW END-OF-CHAPTER COMPUTATIONAL EXERCISES PROVIDE ESSENTIAL PRACTICE. Students gain critical hands-on experience and practice with new Computational Exercises in most chapters that tie directly to chapter Learning Objectives.
  • NEW CLEAR DESIGN FOR THIS EDITION’S EXAMPLES CLARIFY AND REINFORCE CONCEPTS. Enhancements to this edition’s design make it easier for students to read and quickly understand the concepts.
  • ADDITIONAL CONCEPT SUMMARIES ASSIST IN REVIEW AND ENSURE UNDERSTANDING. At least three fresh new Concept Summaries per chapter recap key points and demonstrate the value of what readers are learning.
  • MORE CENGAGENOW ALGORITHMIC PROBLMES PROVIDE CRITICAL HANDS-ON PRACTICE. Additional Algorithmic problems in CengageNOW reinforce tax content in each chapter.
  • ENGAGING NEW INTERIOR DESIGN AND DISTINCTIVE LEARNING FEATURES CAPTURE AND DIRECT READERS’ ATTENTION. New four-color interior design, and streamlined coverage and labeling of chapter pedagogy.
  • STREAMLINED ANCILLARY RESOURCES PLACE SUPPORT AT YOUR FINGERTIPS. Quickly find the support you need for this edition with PowerPoint® slides and other helpful resources now included in the Instructor’s Guide for your convenience.

Learning Resource Bundles

Choose the textbook packaged with the resources that best meet your course and student needs. Contact your Learning Consultant for more information.

Printed Text + H&R Block CD-ROM + CengageNOW™, 1 term Instant Access

ISBN-10: 1337121134 | ISBN-13: 9781337121132

List Price = $388.95  | CengageBrain Price = $388.95

Efficacy and Outcomes


“I am loyal to this text because of the depth and breadth of coverage, and the comprehensive tax return problems. I like to teach using tax forms because I believe it really helps students understand and get comfortable with the big picture of tax return.”

— Leslie Kruser, Judson University


All supplements have been updated in coordination with the main title. Select the main title's "About" tab, then select "What's New" for updates specific to title's edition.

For more information about these supplements, or to obtain them, contact your Learning Consultant.

Instructor Supplements

Solutions Manual  (ISBN-10: 1305393384 | ISBN-13: 9781305393387)

Written by the South-Western Federal Taxation editors and authors, the Solutions Manual features solutions arranged in accordance with the sequence of chapter material. Solutions to all homework items are tagged with their level of difficulty and Learning Objective(s) as well as the AACSB’s and AICPA’s core competencies−giving you more control than ever in selecting homework to match the topics covered. The Solutions Manual is available in print and on the Instructor’s Companion Website.

Instructor's Companion (with PowerPoint®, Test Bank, Instructor's Guide, Solutions Manual, Updates)  (ISBN-10: 1305394550 | ISBN-13: 9781305394551)

All instructor resources for South-Western Federal Taxation 2016: Individual Income Taxes are now available via the Instructor Companion Website. Resources available include: Solutions Manual, Test Bank, and Instructor PowerPoint® Lectures.

Cengage Learning Testing, powered by Cognero Instant Access  (ISBN-10: 1305393457 | ISBN-13: 9781305393455)

Cengage Learning Testing, powered by Cognero®, is a flexible, online system that allows you to author, edit, and manage test bank content from multiple Cengage Learning solutions. Create multiple test versions in an instant and deliver tests from your learning management system, your classroom or wherever you want!

CengageNOW™, 1 term Instant Access for Hoffman/Young/Raabe/Maloney/Nellen's South-Western Federal Taxation 2016: Individual Income Taxes  (ISBN-10: 1305393414 | ISBN-13: 9781305393417)

CengageNOW goes beyond memorization and basic homework practice to engage you, the student, in relevant multimedia study tools, detailed feedback, and assessment tools that help you reach true understanding. Activities are carefully constructed and aligned to learning taxonomies with the entire workflow in mind--from basic knowledge and comprehension to application and analysis.

List Price = $162.00  | CengageBrain Price = $162.00  | College Bookstore Wholesale Price = $162.00

Student Supplements

CengageNOW™, 1 term Instant Access for Hoffman/Young/Raabe/Maloney/Nellen's South-Western Federal Taxation 2016: Individual Income Taxes  (ISBN-10: 1305393414 | ISBN-13: 9781305393417)

CengageNOW goes beyond memorization and basic homework practice to engage you, the student, in relevant multimedia study tools, detailed feedback, and assessment tools that help you reach true understanding. Activities are carefully constructed and aligned to learning taxonomies with the entire workflow in mind--from basic knowledge and comprehension to application and analysis.

List Price = $162.00  | CengageBrain Price = $162.00  | College Bookstore Wholesale Price = $162.00

Meet the Author

Author Bio

William H. Hoffman, Jr.

Dr. William H. Hoffman, Jr., earned his B.A. and J.D. degrees from the University of Michigan and M.B.A. and Ph.D. degrees from The University of Texas. He is a licensed CPA and attorney in Texas. Recognized for his teaching excellence, Dr. Hoffman's academic experience includes The University of Texas (1957−1961), Louisiana State University (1961−1967), and the University of Houston (1967−1999). A frequently requested professional speaker, Dr. Hoffman has addressed many tax institutes and conferences and has published extensively in academic and professional journals. His articles appear in The Journal of Taxation, The Tax Adviser, Taxes – The Tax Magazine, The Journal of Accountancy, The Accounting Review, and Taxation for Accountants.

James C. Young

Dr. James C. Young is the Crowe Horwath Professor of Accountancy at Northern Illinois University. A graduate of Ferris State University (B.S.) and Michigan State University (M.B.A. and Ph.D.), Dr. Young's research focuses on taxpayer responses to the income tax using archival data. His dissertation received the PricewaterhouseCoopers/American Taxation Association Dissertation Award and his subsequent research has received funding from a number of organizations, including the Ernst & Young Foundation Tax Research Grant Program. His work has been published in a variety of academic and professional journals, including the National Tax Journal, The Journal of the American Taxation Association, and Tax Notes. Dr. Young is a Northern Illinois University Presidential Teaching Professor. A respected educator, he has received the Illinois CPA Society Distinguished Accounting Educator Award in 2012 as well as outstanding teaching awards from George Mason University and Michigan State University.

William A. Raabe

William A. Raabe, Ph.D., CPA, is the Distinguished Professor of Accounting in the College of Business and Economics of the University of Wisconsin−Whitewater. A graduate of Carroll University (Wisconsin) and the University of Illinois, Dr. Raabe's teaching and research interests include international and multistate taxation, technology in tax education, personal financial planning, and the economic impact of sports teams and fine arts groups. Dr. Raabe also writes Federal Tax Research and the PricewaterhouseCoopers Tax Case Studies. He has written extensively about book-tax differences in financial reporting. Dr. Raabe has been a visiting tax faculty member for a number of public accounting firms, bar associations, and CPA societies. He has received numerous teaching awards, including the Accounting Educator of the Year award from the Wisconsin Institute of CPAs. He has been the faculty adviser for student teams in the Deloitte Tax Case Competition (national finalists at three different schools) and the PricewaterhouseCoopers Extreme Tax policy competition (national finalist). For more information about Dr. Raabe, visit and BillRaabeTax on YouTube and Twitter.

David M. Maloney

David M. Maloney, Ph.D., CPA, is the Carman G. Blough Professor of Accounting Emeritus at the University of Virginia's McIntire School of Commerce. He completed his undergraduate work at the University of Richmond and his graduate work at the University of Illinois at Urbana-Champaign. Upon joining the Virginia faculty in January 1984, Dr. Maloney taught federal taxation in the graduate and undergraduate programs and was a recipient of major research grants from the Ernst & Young and KPMG Foundations. Dr. Maloney has published work in numerous professional journals, including Journal of Taxation, The Tax Adviser, Tax Notes, Corporate Taxation, Accounting Horizons, Journal of Taxation of Investments, and Journal of Accountancy.

Annette Nellen

Annette Nellen, CPA, CGMA, Esquire, directs San José State University's graduate tax program (MST) and teaches courses in tax research, tax fundamentals, accounting methods, property transactions, state taxation, employment tax, ethics, and tax policy. Professor Nellen is a graduate of CSU Northridge, Pepperdine (MBA), and Loyola Law School. Prior to joining SJSU in 1990, she was with a Big 4 firm and the IRS. At SJSU, Professor Nellen is a recipient of the Outstanding Professor and Distinguished Service Awards. Professor Nellen is an active member of the tax sections of the AICPA and American Bar Association. In 2013, she received the AICPA Arthur J. Dixon Memorial Award, the highest award given by the accounting profession in the area of taxation. Professor Nellen is the author of BloombergBNA Tax Portfolio, Amortization of Intangibles, and the BloombergBNA Internet Law Resource Center, Overview of Internet Taxation Issues. She has published numerous articles in the AICPA Tax Insider, Tax Adviser, State Tax Notes, and The Journal of Accountancy. She has testified before the House Ways & Means and Senate Finance Committees, and other committees on federal and state tax reform. Professor Nellen maintains the 21st Century Taxation website and blog ( as well as websites on tax reform and state tax issues (